§ 35-10-1 - Establishment – Membership – Officers – Quorum – Investment votes – Fund managers.
SECTION 35-10-1
§ 35-10-1 Establishment – Membership– Officers – Quorum – Investment votes – Fund managers.– (a) There is hereby authorized, created and established in the office of thegeneral treasurer a state investment commission, the membership of which shallconsist of the general treasurer, ex officio, or a deputy general treasurer ashis or her designee, who shall act as chairperson, the director ofadministration, ex officio, or any assistant director of administration as hisor her designee, who shall act as secretary, a director of the higher educationassistance authority, or his or her designee to be appointed by the generaltreasurer, an active or retired teacher, state, or municipal employee member ofthe retirement system or official from the teacher, state, or municipalemployee unions to be appointed by the general treasurer for a term of three(3) years, the executive director of the state retirement board, who shall be anonvoting member, two (2) members of the general public to be appointed by thegeneral treasurer, one of whom shall serve for an initial term of one year, andone of whom shall serve for an initial term of two (2) years and until his orher successor is appointed and qualified and three (3) members of the generalpublic to be appointed by the governor, one of whom shall serve for an initialterm of three (3) years, one of whom shall serve for an initial term of two (2)years, and one of whom shall serve for an initial term of one year and untilhis or her successor is appointed and qualified. Thereafter, the general publicmembers shall serve for three (3) year terms and until his or her successor isappointed and qualified. The members of the general public appointed by thegovernor and the general treasurer shall be qualified by training or experiencein the field of investment or finance.
The commission may elect from among its own members suchother officers as they deem necessary. All general treasurer and gubernatorialappointments made under this section after the effective date of this act[July 4, 2006] shall be subject to the advice and consent of thesenate. No one shall be eligible for appointment unless he or she is a residentof this state.
Public members of the board shall be removable by the chairfor cause only, and removal solely for partisan or personal reasons unrelatedto capacity or fitness for the office shall be unlawful.
Newly appointed and qualified public members shall, withinsix (6) months of their appointment, attend a training course that shall bedeveloped and provided by the office of the general treasurer and shall includeinstruction in the following areas: the provisions of chapters 35-10, 42-46,36-14 and 38-2 of the Rhode Island general laws; and the board's rules andregulations. The director of the department of administration shall, withinninety (90) days of the effective date of this act [July 4, 2006],prepare and disseminate training materials relating to the provisions ofchapters 42-46, 36-14 and 38-2.
Any member of the general public who was appointed by thegovernor or general treasurer prior to the effective date of this act[July 4, 2006] shall continue to serve until such time as a successoris appointed and qualified.
(b) A member shall be eligible to succeed himself or herself.In the event of a vacancy in the office of an appointive member, the vacancyshall be filled by the appointing authority for the unexpired term.
(c) A majority of all the members of the commission shall benecessary to constitute a quorum thereof. The approval of a majority of thecommission shall be required prior to the purchase or sale of any investment,excepting those investments made by investment managers engaged by thecommission and invested in accordance with the commission's statement ofinvestment objectives and policies, day to day cash investments by the generaltreasurer, and, because of the importance of speedy action, investments inobligations of the United States government or certificates of deposit maturingwithin one year. These investments may be made within the framework of a policyestablished by the commission without prior approval of each transaction. Thecommission shall be empowered to engage one or more fund managers and todelegate to the manager or managers the authority to carry out the investmentof the funds within the commission's control, or any portion thereof, inaccordance with the objectives of the commission as set forth in its statementof investment objectives and policies.
(d) The day-to-day administration of the commission,including the voting of proxies and the execution of investment acquisitionsand dispositions of the commission's assets, shall be carried out by the officeof the general treasurer; provided, that the costs and expenses incurred in themanagement of the funds within the commission's control shall remain theobligation of those funds and not that of the general treasurer.
(e) Within ninety (90) days after the end of each fiscal yearduring which the board has conducted business, the commission shall submit anannual report to the governor, the speaker of the house of representatives, thepresident of the senate, and the secretary of state of its activities duringthat fiscal year. The report shall provide: an operating statement summarizingmeetings or hearings held, meeting minutes if requested, subjects addressed,decisions rendered, rules or regulations promulgated, studies conducted,policies and plans developed, approved, or modified, and programs administeredor initiated; a consolidated financial statement of all the funds received andexpended including the source of funds, a listing of any staff supported bythese funds, and a summary of any clerical, administrative or technical supportreceived; a summary of performance during the previous fiscal year includingaccomplishments, shortcomings and remedies; a synopsis of hearings, complaints,suspensions, or other legal matters related to the authority of the board; asummary of any training courses held pursuant to § 35-10-1; a briefing onanticipated activities in the upcoming fiscal year; and findings andrecommendations for improvements. The report shall be posted electronically onthe general assembly and the secretary of state's website as prescribed in§ 42-20-8.2 of the Rhode Island general laws. The director of thedepartment of administration shall be responsible for the enforcement of thisprovision.